County council bosses are adamant a huge funding blow will not sink plans for a pleasure marina at Sutton Bridge.
The council will lose £375,000 in European cash earmarked for the project because it cannot be spent by the March 31 deadline.
But the council says it will simply reapply for the money and expects to have the 80-berth marina up and running by the end of next year.
Paul Wheatley, the council’s head of regeneration, said: “Progress continues to be made on the marina, and we’re confident the project will ultimately come to fruition.
“Unfortunately, due to the delays, we will not be able to draw down the money earmarked for the scheme by the Rural Development Programme for England.
“However, our aim is to bridge the gap by bidding for funding from the new EU programme.
“The marina has the potential to create significant economic uplift in Sutton Bridge, and forms part of our waterways development strategy.
“Whilst there will clearly be a delay to the project, we’re committed to making sure it is delivered.”
Another major chunk of the £915,000 project is being paid for with £267,000 of Section 106 cash from the Sutton Bridge Power Station Fund.
Last September there were fears a legal wrangle over compulsorily purchasing land for the marina could drag on for years – and Sutton Bridge could lose the marina Section 106 money unless it is spent by the 2015 deadline.
But Mr Wheatley said then the council was confident the money would be spent in time.
He also said: “We are mindful however that the Section 106 money belongs to the community of Sutton Bridge and must not be lost.”